Bid No. CoGTA (T) 04/2020 Bid Description APPOINTMENT OF A … · 2020. 10. 26. · page 3 of 51 sbd 1 part a invitation to bid you are hereby invited to bid for requirements of the

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Bid No. CoGTA (T) 04/2020

Bid Description APPOINTMENT OF A PANEL OF SERVICE PROVIDERS TO PROVIDE CO-SOURCE INTERNAL AUDIT AND FORENSIC SERVICES TO THE DEPARTMENT OF COOPERATIVE GOVERNANCE AS AND WHEN REQUIRED FOR A PERIOD OF 36 MONTHS

Contact Person/s: Mr Dumisani Ngutshana / Mr Sello Sebola

Technical Terms of reference: Name: Mr Dumisani Ngutshana / Mr Sello Sebola

Telephone No: (012) 334-0506 / 334-0727

Email address: [email protected] / [email protected]

Bid Procedures: Name: Nomvula Ntuli / Kgaugelo Tselana / Mogoma Sekgothe

Telephone No: (012) 334 0820 or 334-0912 or 334-0586

Email address: [email protected]/[email protected] /[email protected]

Compulsory bid briefing Venue, Date and Time 22 October 2020 at 10:00, 87 Hamilton Building, Foyer

Reception c/o Johannes Ramokhoase and Steve Biko street.

Closing time and date for bid and venue

Time and Date: 11:00 on the 10th November 2020 at No. 87, c/o Hamilton and Johannes Ramokhoase Streets, Foyer

Condition Bids received after the closing time and date will not to be accepted for consideration. Bids should be in a sealed envelope clearly marked with the above bid number, description and Department of Cooperative Governance.

Delivery address and conditions

for delivery of bids

Delivery address: No. 87, c/o Hamilton and Johannes Ramokhoase Streets, Pretoria, Arcadia (Bid Box is placed in the Foyer at the ground floor) Bidders must ensure that their bids are delivered timeously to the correct address and directly to the bid box. The department will not take any responsibility for late mailed bids. The bid box is open from Monday to Friday – 08h00 to 16h30

NB: THE NATIONAL TREASURY SCM INSTRUCTION NOTE NO 4A OF 2016/17 STATE THAT BIDS MAY ONLY BE AWARDED TO SUPPLIERS AFTER VERIFYING THAT THEY ARE REGISTERED AS PROSPECTIVE SUPPLIERS ON THE CENTRAL SUPPLIER DATABASE (CSD). IN ORDER FOR THE DEPARTMENT TO VERIFY YOUR COMPANY’S REGISTRATION WITH CENTRAL SUPPLIER DATABASE (CSD) PLEASE PROVIDE THE FOLLOWING INFORMATION:

CSD SUPPLIER NUMBER:

UNIQUE REGISTRATION

REFERENCE NUMBER:

(NB: ATTACH A COPY OF CSD REGISTRATION REPORT)

The SBD 1 and all other application forms attached as Part 4 must be completed and signed in the original that is in ink. Forms with photocopied signatures or other such reproduction of signatures will be rejected. Bids by telegram facsimile or other similar apparatus will not be acceptable for consideration.

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TABLE OF CONTENTS

PART SCHEDULE DESCRIPTION PAGES

COVER PAGE 1

TABLE OF CONTENTS 2

INVITATION TO BID (SBD 1) 3-4

PART 1 CONDITIONS OF BID 5-8

PART 2 SPECIAL INSTRUCTIONS AND NOTICES TO BIDDERS REGARDING THE COMPLETION OF BIDDING FORMS

9-14

AUTHORITY TO SIGN A BID AND PRE-QUALIFICATION REQUIREMENTS

PART 3 TERMS OF REFERENCE 15-22

PART 4 SCHEDULE A GOVERNMENT PROCUREMENT: GENERAL CONDITIONS OF CONTRACT 23-32

SCHEDULE B GOVERNMENT PROCUREMENT: SPECIAL CONDITIONS OF CONTRACT 33-34

SCHEDULE C PRICING SCHEDULE – SERVICES (SBD 3.3) 35-36

SCHEDULE D DECLARATION OF INTEREST (SBD 4) 37-40

SCHEDULE E PREFERENCE POINTS CLAIM FORM (SBD 6.1) 41-44

SCHEDULE F DECLARATION OF BIDDERS’ PAST SUPPLY CHAIN MANAGEMENT PRACTICES (SBD 8)

45-46

SCHEDULE G CERTIFICATE OF INDEPENDENT BID DETERMINATION (SBD 9) 47-49

SCHEDULE H DECLARATION THAT INFORMATION PROVIDED IN THIS BID DOCUMENT IS TRUE, CORRECT AND UP TO DATE

50

SCHEDULE I TENDER AWARDS 51

DEFINITIONS

The rules of interpretation and defined terms contained in the General Conditions of Contract (GCC) shall apply to this invitation

to bid unless the context requires otherwise.

In addition, the following terms used in this invitation to bid shall, unless indicated otherwise, have the meanings assigned to

such terms in the table below.

DCoG Means the Department of Cooperative Governance.

Invitation to bid means this invitation to bid comprising

o The cover page and the table of content and definitions

o Part 1 which details the Conditions of Bid;

o Part 2 special instructions and notices to bidders regarding the completion of bidding

document and Authority to sign a bid;

o Part 3 which details the Terms of Reference relating to the service

o Part 4 which contains all the requisite bid forms and certificates;

As read with GCC – General Conditions of Contract

Services means the services defined on the cover page of this invitation to bid and described in detail in the

Terms of Reference;

Specifications /Terms

of Reference

means the specifications or terms contained in Part 3 of this invitation to bid;

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SBD 1 PART A

INVITATION TO BID

YOU ARE HEREBY INVITED TO BID FOR REQUIREMENTS OF THE (NAME OF DEPARTMENT/ PUBLIC ENTITY)

BID NUMBER: COGTA (T) 04/2019 CLOSING DATE: 10 NOVEMBER 2020 CLOSING TIME: 11:00

DESCRIPTION

APPOINTMENT OF A PANEL OF SERVICE PROVIDERS TO PROVIDE CO-SOURCE INTERNAL AUDIT AND FORENSIC SERVICES TO THE DEPARTMENT OF COOPERATIVE GOVERNANCE AS AND WHEN REQUIRED FOR A PERIOD OF 36 MONTHS

BID RESPONSE DOCUMENTS MAY BE DEPOSITED IN THE BID BOX SITUATED AT (STREET ADDRESS)

SCM : ACQUISITION MANAGEMENT UNIT TENDER BOX (RECEPTION AREA)

DEPARTMENT OF COOPERATIVE GOVERNANCE, 87 HAMILTON BUILDING

C/O HAMILTON AND JOHANNES RAMOKHOASE STREETS

ARCADIA, 0083

BIDDING PROCEDURE ENQUIRIES MAY BE DIRECTED TO TECHNICAL ENQUIRIES MAY BE DIRECTED TO:

CONTACT PERSON Ms. Nomvula Ntuli CONTACT PERSON Dumisani Ngutshana / Sello Sebola

TELEPHONE NUMBER (012) 336 0820 TELEPHONE NUMBER (012) 334-0506 /334-0727

FACSIMILE NUMBER N/A FACSIMILE NUMBER N/A

E-MAIL ADDRESS [email protected] E-MAIL ADDRESS [email protected]/[email protected]

SUPPLIER INFORMATION

NAME OF BIDDER

POSTAL ADDRESS

STREET ADDRESS

TELEPHONE NUMBER CODE NUMBER

CELLPHONE NUMBER

FACSIMILE NUMBER CODE NUMBER

E-MAIL ADDRESS

VAT REGISTRATION NUMBER

SUPPLIER COMPLIANCE STATUS

TAX COMPLIANCE SYSTEM PIN:

OR

CENTRAL SUPPLIER DATABASE No: MAAA

B-BBEE STATUS LEVEL VERIFICATION CERTIFICATE

TICK APPLICABLE BOX]

Yes No

B-BBEE STATUS LEVEL SWORN AFFIDAVIT

[TICK APPLICABLE BOX]

Yes No

[A B-BBEE STATUS LEVEL VERIFICATION CERTIFICATE/ SWORN AFFIDAVIT (FOR EMES & QSEs) MUST BE SUBMITTED IN ORDER TO QUALIFY FOR PREFERENCE POINTS FOR B-BBEE]

ARE YOU THE ACCREDITED REPRESENTATIVE IN SOUTH AFRICA FOR THE GOODS /SERVICES /WORKS OFFERED?

Yes No [IF YES ENCLOSE PROOF]

ARE YOU A FOREIGN BASED SUPPLIER FOR THE GOODS /SERVICES /WORKS OFFERED?

Yes No [IF YES, ANSWER THE QUESTIONNAIRE BELOW ]

QUESTIONNAIRE TO BIDDING FOREIGN SUPPLIERS

IS THE ENTITY A RESIDENT OF THE REPUBLIC OF SOUTH AFRICA (RSA)? YES NO

DOES THE ENTITY HAVE A BRANCH IN THE RSA? YES NO

DOES THE ENTITY HAVE A PERMANENT ESTABLISHMENT IN THE RSA? YES NO

DOES THE ENTITY HAVE ANY SOURCE OF INCOME IN THE RSA? YES NO

IS THE ENTITY LIABLE IN THE RSA FOR ANY FORM OF TAXATION? YES NO IF THE ANSWER IS “NO” TO ALL OF THE ABOVE, THEN IT IS NOT A REQUIREMENT TO REGISTER FOR A TAX COMPLIANCE STATUS SYSTEM PIN CODE FROM THE SOUTH AFRICAN REVENUE SERVICE (SARS) AND IF NOT REGISTER AS PER 2.3 BELOW.

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PART B

TERMS AND CONDITIONS FOR BIDDING

1. BID SUBMISSION:

1.1. BIDS MUST BE DELIVERED BY THE STIPULATED TIME TO THE CORRECT ADDRESS. LATE BIDS WILL NOT BE ACCEPTED FOR CONSIDERATION.

1.2. ALL BIDS MUST BE SUBMITTED ON THE OFFICIAL FORMS PROVIDED–(NOT TO BE RE-TYPED) OR IN THE MANNER PRESCRIBED IN THE BID DOCUMENT.

1.3. THIS BID IS SUBJECT TO THE PREFERENTIAL PROCUREMENT POLICY FRAMEWORK ACT, 2000 AND THE PREFERENTIAL PROCUREMENT REGULATIONS, 2017, THE GENERAL CONDITIONS OF CONTRACT (GCC) AND, IF APPLICABLE, ANY OTHER SPECIAL CONDITIONS OF CONTRACT.

1.4. THE SUCCESSFUL BIDDER WILL BE REQUIRED TO FILL IN AND SIGN A WRITTEN CONTRACT FORM (SBD7).

2. TAX COMPLIANCE REQUIREMENTS

2.1 BIDDERS MUST ENSURE COMPLIANCE WITH THEIR TAX OBLIGATIONS.

2.2 BIDDERS ARE REQUIRED TO SUBMIT THEIR UNIQUE PERSONAL IDENTIFICATION NUMBER (PIN) ISSUED BY SARS TO ENABLE THE ORGAN OF STATE TO VERIFY THE TAXPAYER’S PROFILE AND TAX STATUS.

2.3 APPLICATION FOR TAX COMPLIANCE STATUS (TCS) PIN MAY BE MADE VIA E-FILING THROUGH THE SARS WEBSITE WWW.SARS.GOV.ZA.

2.4 BIDDERS MAY ALSO SUBMIT A PRINTED TCS CERTIFICATE TOGETHER WITH THE BID.

2.5 IN BIDS WHERE CONSORTIA / JOINT VENTURES / SUB-CONTRACTORS ARE INVOLVED, EACH PARTY MUST SUBMIT A SEPARATE TCS CERTIFICATE / PIN / CSD NUMBER.

2.6 WHERE NO TCS PIN IS AVAILABLE BUT THE BIDDER IS REGISTERED ON THE CENTRAL SUPPLIER DATABASE (CSD), A CSD NUMBER MUST BE PROVIDED.

2.7 NO BIDS WILL BE CONSIDERED FROM PERSONS IN THE SERVICE OF THE STATE, COMPANIES WITH DIRECTORS WHO ARE PERSONS IN THE SERVICE OF THE STATE, OR CLOSE CORPORATIONS WITH MEMBERS PERSONS IN THE SERVICE OF THE STATE.”

NB: FAILURE TO PROVIDE / OR COMPLY WITH ANY OF THE ABOVE PARTICULARS MAY RENDER THE BID INVALID. SIGNATURE OF BIDDER: …………………………………………… CAPACITY UNDER WHICH THIS BID IS SIGNED: …………………………………………… (Proof of authority must be submitted e.g. company resolution)

DATE: …………………………………………...

http://www.sars.gov.za/

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PART 1

Conditions of Bid

1. BACKGROUND AND INTRODUCTORY PROVISIONS

Refer to Page 3 of this invitation to bid for background and introductory information relating to the Services and this

invitation to bid.

2. OFFER AND SPECIAL CONDITIONS

2.1 Without detracting from the generality of clause below, bidders must submit a completed and signed Invitation to Bid form

(SBD1) and requisite bid forms attached as (Part 4) with its bid. Bidders must take careful note of the special conditions.

2.2 All bids submitted in reply to this invitation to bid should incorporate all the forms, parts, certificates and

other documentation forming part of this invitation to bid, duly completed and signed where required.

2.3 In the event that any form or certificate provided in Part 4 of this invitation to bid does not have adequate space for the

bidder to provide the requested details, the bidder should attach an annexure to such form or certificate on which the

requested details should be provided and the bidder should refer to such annexure in the form or certificate provided.

3. CLOSING TIME OF BIDS AND PROVISIONS RELATING TO SUBMISSION OF BIDS

3.1 The closing date and time for the receipt of bids in response to this invitation to bid is detailed on the cover page of this

invitation to bid.

3.2 All bids must be submitted in a sealed envelope bearing the bid number, bid description and closing date.

3.4 All bids must be deposited in the bid box before the closing time and date stipulated above, at the address detailed on the

cover page of this invitation to bid.

4. ENQUIRIES

Should any bidder have any enquiries relating to this invitation to bid, such enquiries may only be addressed to the person/s

detailed on the cover page to this invitation to bid at the number/s stipulated.

5. PRICING

5.1 The bidder(s) must submit details regarding the bid price for the Services on the Pricing Schedule form/s attached as Part

4 – Schedule C which completed form/s must be submitted together with the bid documents.

5.2 Pricing must be stipulated INCLUSIVE OF VALUE ADDED TAX

5.3 It is an express requirement of this invitation to bid that the bidders provide some transparency in respect to their pricing

approach. In this regard, bidders must indicate the basis on which they have calculated their pricing by completing all

aspects of the Pricing Schedule form Part 4 – Schedule C

6. DECLARATION OF INTEREST

The bidder should submit a duly completed and signed declaration of interest (SBD 4) together with the bid. The

declaration of interest is attached as Part 4 – Schedule D.

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7. PREFERENTIAL POINTS CLAIM FORM IN TERMS OF THE PREFERENTIAL PROCUREMENT REGULATIONS OF

2017.

The bidder must complete the preferential points claim form (SBD 6.1) and sign accordingly to submit with the bid. The

preferential points claim form is attached as Part 4 – Schedule E.

8. DECLARATION OF BIDDER’S PAST SUPPLY CHAIN MANAGEMENT PRACTICES

The bidder must complete the declaration and sign accordingly to submit with the bid. The declaration of bidder’s past

supply chain management practices (SBD 8) is attached as Part 4 – Schedule F

9. CERTIFICATE OF INDEPENDENT BID DETERMINATION

The bidder must complete the certificate of independent bid determination and sign accordingly to submit with the bid.

The certificate of independent bid determination (SBD 9) is attached as Part 4 – Schedule G

10. PARTNERSHIPS AND LEGAL ENTITIES

In the case of the bidder being a partnership all certificates reflecting the names, identity numbers and address of the

partners, members or directors (as the case may be) must be submitted with the bid.

11. CONSORTIUM / JOINT VENTURE

11.1 It is recognized that bidders may wish to form consortia to provide the Services.

11.2 A bid in response to this invitation to bid by a consortium shall comply with the following requirements: -

11.2.1 It shall be signed so as to be legally binding on all consortium members;

11.2.2 One of the members shall be nominated by the others as authorized to be the lead member and this authorization

shall be included in the agreement entered into between the consortium members;

11.2.3 The lead member shall be the only authorized party to make legal statements, communicate with the DCoG and

receive instructions for and on behalf of any and all the members of the consortium;

11.2.4 A copy of the agreement entered into by the consortium members shall be submitted with the bid.

11.2.5 The lead member must comply with all the requirements of the bid.

11.2.6 Preference points will be only awarded when a consolidated BBBEE Certificate is submitted

12. VALIDITY

Bid documentation submitted by the bidder will be valid and open for acceptance for a period of (90) calendar days from

the closing date and time stipulated on the front cover of this invitation to bid.

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13. ACCEPTANCE OF BIDS

The DCoG does not bind itself to accept either the lowest or any other bid and reserves the right to accept the bid which

it deems to be in the best interest of the Department.

14. NO RIGHTS OR CLAIMS

14.1 Receipt of the invitation to bid does not confer any right on any party in respect of the Services or in respect of or against

the DCoG. The DCoG reserves the right, in its sole discretion, to withdraw by notice to bidders any Services or combination

of Services from the bid process, to terminate any party’s participation in the bid process or to accept or reject any response

to this invitation to bid on notice to the bidders without liability to any party. Accordingly, parties have no rights, expressed

or implied, with respect to any of the Services as a result of their participation in the bid process.

14.2 The DCoG, nor any of their respective directors, officers, employees, agents, representatives or advisors will assume any

obligations for any costs or expenses incurred by any party in or associated with any appraisal and/or investigation relating

to this invitation to bid or the subsequent submission of a bid in response to this invitation to bid in respect of the Services

or any other costs, expenses or liabilities of whatsoever nature and howsoever incurred by bidders in connection with or

arising out of the bid process.

15. NON DISCLOSURE, CONFIDENTIALITY AND SECURITY

15.1 The invitation to bid and its contents are made available on condition that they are used in connection with the bid process

set out in the invitation to bid and for no other purpose. All information pertaining to this invitation to bid and its contents

shall be regarded as restricted and divulged on a “need to know” basis with the approval of the DCoG.

15.2 In the event that the bidder is appointed pursuant to this invitation to bid such bidder may be subject to security clearance

prior to commencement of the Services.

16. ACCURACY OF INFORMATION

16.1 The information contained in the invitation to bid has been prepared in good faith. The DCoG nor any of their respective

directors, advisors, officers, employees, agents, representatives make any representation or warranty or give any

undertaking express or implied, or accept any responsibility or liability whatsoever, as to the contents, accuracy or

completeness of the information contained in the invitation to bid, or any other written or oral information made available

in connection with the bid and nothing contained herein is, or shall be relied upon as a promise or representation, whether

as to the past or the future.

16.1.1 This invitation to bid may not contain all the information that may be required to evaluate a possible submission of a response

to this invitation to bid. The bidder should conduct its own independent analysis of the operations to the extent required

to enable it to respond to this bid.

17. COMPETITION

17.1 Bidders and their respective officers, employees and agents are prohibited from engaging in any collusive action with

respect to the bidding process which serves to limit competition amongst bidders.

17.1.1 In general, the attention of bidders is drawn to Section 4(1) (iii) of the Competition Act1998 (Act No. 89 of 1998) (the

Competition Act) that prohibits collusive bidding.

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17.1.2 If bidders have reason to believe that competition issues may arise from any submission of a response to this bid invitation

they are encouraged to discuss their position with the competition authorities before submitting a response.

17.1.3 Any correspondence or process of any kind between bidders and the competition authorities must be documented in the

responses to this invitation to bid.

18. RESERVATION OF RIGHTS

18.1 Without limitation to any other rights of the DCoG (whether otherwise reserved in this invitation to bid or under law), the

DCoG expressly reserves the right to: -

18.1.1 Request clarification on any aspect of a response to this invitation to bid received from the bidder, such requests and the

responses to be in writing;

18.1.2 Amend the bidding process, including the timetables, closing date and any other date at its sole discretion;

18.1.3 Reject all responses submitted by bidders and to embark on a new bid process;

18.1.4 The Department may request the shortlisted bidders to present their proposals to the Bid Committee;

18.1.5 To verify information provided for references to claim points;

18.1.6 To disqualify any tender/bidder who misrepresented information to claim points and

18.1.7 The Department reserve a right to award this tender to more than one bidder.

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PART 2

SPECIAL INSTRUCTIONS AND NOTICES TO BIDDERS REGARDING THECOMPLETION OF BIDDING FORMS

PLEASE NOTE THAT THIS BID IS SUBJECT TO TREASURY REGULATIONS 16A ISSUED IN TERMS OF THE PUBLIC FINANCE

MANAGEMENT ACT, 1999, THE COGTA SUPPLY CHAIN MANAGEMENT POLICY 2017, PREFERENTIAL PROCUREMENT REGUALTIONS

2017 AND THE GENERAL CONDITIONS OF CONTRACT.

1. Unless inconsistent with or expressly indicated otherwise by the context, the singular shall include the plural and vice versa

and with words importing the masculine gender shall include the feminine and the neuter.

2. Under no circumstances whatsoever may the bid forms be retyped or redrafted. Photocopies of the original bid documentation

may be used, but an original signature must appear on such photocopies.

3. The bidder is advised to check the number of pages and to satisfy himself that none are missing or duplicated.

4. Bids submitted must be complete in all respects.

5. Bids shall be lodged at the address indicated not later than the closing time specified for their receipt, and in accordance with

the directives in the bid documents.

6. Each bid shall be addressed in accordance with the directives in the bid documents and shall be lodged in a separate sealed

envelope, with the name and address of the bidder, the bid number and closing date indicated on the envelope. The envelope

shall not contain documents relating to any bid other than that shown on the envelope. If this provision is not complied with,

such bids may be rejected as being invalid.

7. All bids received in sealed envelopes with the relevant bid numbers on the envelopes are kept unopened in safe custody until

the closing time of the bids. Where, however, a bid is received open, it shall be sealed. If it is received without a bid number

on the envelope, it shall be opened, the bid number ascertained, the envelope sealed and the bid number written on the

envelope.

8. A specific box is provided for the receipt of bids, and no bid found in any other box or elsewhere subsequent to the closing

date and time of bid will be considered.

9. No bid sent through the post will be considered if it is received after the closing date and time stipulated in the bid

documentation, and proof of posting will not be accepted as proof of delivery.

10. No bid submitted by telefax, telegraphic or other electronic means will be considered.

11. Bidding documents must not be included in packages containing samples. Such bids may be rejected as being invalid.

12. Any alteration made by the bidder must be initialled.

13. Use of correcting fluid is prohibited.

14. Bids will be opened in public as soon as practicable after the closing time of bid.

15. Where practical, prices are made public at the time of opening bids.16. If it is desired to make more than one offer against

any individual item, such offers should be given on a photocopy of the page in question. Clear indication thereof must be stated

on the schedules attached.

FAILURE TO COMPLY WITH THE FOLLOWING ABOVE MENTIONED INSTRUCTIONS

2,4,5,6,9,10,11,12,13 MAY LEAD TO YOU BID BEING REJECTED

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AUTHORITY TO SIGN A BID

A. COMPANIES

If a Bidder is a company, a certified copy of the resolution by the board of directors, personally signed by the chairperson of the

board, authorising the person who signs this bid to do so, as well as to sign any contract resulting from this bid and any other

documents and correspondence in connection with this bid and/or contract on behalf of the company must be submitted with this

bid, that is before the closing time and date of the bid

AUTHORITY BY BOARD OF DIRECTORS

By resolution passed by the Board of Directors on….................................20....................................

Mr/Mrs………………………………………………………………………………………………………………………………………

(whose signature appears below) has been duly authorised to sign all documents in connection with this bid on behalf of

(Name of Company) ……………………………........................................................................................

IN HIS/HER CAPACITY AS: ………………......................................................................................

SIGNED ON BEHALF OF COMPANY: .........................................................................................

(PRINT NAME)

SIGNATURE OF SIGNATORY: ................................................DATE: ........................................

WITNESSES: 1 .....................................................................DATE……………………………………….

2 ....................................................................DATE………………………………………….

B. SOLE PROPRIETOR (ONE - PERSON BUSINESS)

I, the undersigned.............................................................................. hereby confirm that I am the sole owner of the business

trading as ............................................................................................

SIGNATURE………………………………………………………….... DATE……………………………….

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C. PARTNERSHIP

The following particulars in respect of every partner must be furnished and signed by every partner:

Full name of partner Residential address Signature

........................................... ........................................... ....................................................

........................................... ............................................ ....................................................

........................................... ........................................... ....................................................

........................................... ........................................... .....................................................

We, the undersigned partners in the business trading as..................................................................

………………………………………………………………………………………………………………………………………………..

hereby authorise ......................................................................to sign this bid as well as any contract resulting from the bid

and any other documents and correspondence in connection with this bid and /or contract on behalf of

............................................ ................................................. .........................................

SIGNATURE SIGNATURE SIGNATURE

........................................... ........................................... .........................................

DATE DATE DATE

D. CLOSE CORPORATION

In the case of a close corporation submitting a bid, a certified copy of the Founding Statement of such corporation shall be included

with the bid, together with the resolution by its members authorising a member or other official of the corporation to sign the

documents on their behalf.

By resolution of members at a meeting on ......................20.................at ……………………………………….

Mr/Ms..................................................................................., whose signature appears below, has been authorised to sign all

documents in connection with this bid on behalf of

(Name of Close Corporation) ……………………………………………………………......................................................................................

SIGNED ON BEHALF OF CLOSE CORPORATION: ………………………………………………………............

(PRINT NAME)

IN HIS/HER CAPACITY AS ................................................... DATE: ..........................................

SIGNATURE OF SIGNATORY............................................... DATE: ……………………………………...

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WITNESSES: 1

.......................................................................DATE: ………………………………………………………….

WITNESSES: 2

........................................................................DATE: ………………………………………………………….

E. CO-OPERATIVE

A certified copy of the Constitution of the co-operative must be included with the bid, together with the resolution by its members

authoring a member or other official of the co-operative to sign the bid documents on their behalf. By resolution of members at a

meeting on ....................... 20...................at.….....................................................

Mr/Ms..................................................................................., whose signature appears below, has been authorised to sign all

documents in connection with this bid on behalf of (Name of cooperative)

....................................................................................................................................................

SIGNATURE OF AUTHORISED REPRESENTATIVE/SIGNATORY: ………………………………………….

IN HIS/HER CAPACITY AS: ....................................................................................................

DATE: .................................…………………………………………………………………………………

SIGNED ON BEHALF OF CO-OPERATIVE: ..............................................................................

NAME IN BLOCK LETTERS……………………………………………………………………………………

WITNESSES: 1 .......................................................................DATE…………………………………….

2 .......................................................................DATE…………………………………….

F. JOINT VENTURE

If a bidder is a joint venture, a certified copy of the resolution/agreement passed/reached signed by the duly authorised

representatives of the enterprises, authorising the representatives who sign this bid to do so, as well as to sign any contract resulting

from this bid and any other documents and correspondence in connection with this bid and/or contract on behalf of the joint venture

must be submitted with this bid, before the closing time and date of the bid.

AUTHORITY TO SIGN ON BEHALF OF THE JOINT VENTURE

By resolution/agreement passed/reached by the joint venture partners on……………………20……………….

Mr/Mrs……………………………………………….………………………Mr/Mrs………………………………………………….

Mr/Mrs………………………………………………………………………….and Mr/Mrs…………………………………………

(whose signatures appear below) have been duly authorised to sign all documents in connection with this bid on behalf of:

(Name of Joint Venture) ……………………………………………………………………………………………………………

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IN HIS/HER CAPACITY AS………………………………………………………………………………………………….

SIGNED ON BEHALF OF (COMPANY NAME) ………………………………………………………………………

(PRINT NAME)

SIGNATURE………………………………………………………………. DATE……………………………………………….

IN HIS/HER CAPACITY AS:……………………………………………………………………………………………………………………….

SIGNED ON BEHALF OF (COMPANY NAME):……………………………………………………………………………………………..

(PRINT NAME)

SIGNATURE………………………………………………………………...DATE………………………………………………

IN HIS/HER CAPACITY AS…………………………………………………………………………………………………

SIGNED ON BEHALF OF (COMPANY NAME) ………………………………………………………………………….

(PRINT NAME)

SIGNATURE………………………………………………………………...DATE…………………………………………......

IN HIS/HER CAPACITY AS…………………………………………………………………...................................

SIGNED ON BEHALF OF (COMPANY NAME) …………………………………………………………………………

(PRINT NAME)

SIGNATURE…………………………………………………………………………. DATE………………………………….

G. CONSORTIUM

If a bidder is a consortium, a certified copy of the resolution/agreement passed/reached signed by the duly authorised

representatives of concerned enterprises, authorising the representatives who sign this bid to do so, as well as to sign any contract

resulting from this bid and any other documents and correspondence in connection with this bid and/or contract on behalf of the

consortium must be submitted with this bid, before the closing time and date of the bid.

AUTHORITY TO SIGN 0N BEHALF OF THE CONSORTIUM

By resolution/agreement passed/reached by the consortium on……………….……20…………………………

Mr/Mrs………………………………………………….…………………………………………………………………………………

(whose signature appear below) have been duly authorised to sign all documents in connection

with this bid on behalf of:

(Name of Consortium) ………………………………………………………………………………………………………………

IN HIS/HER CAPACITY AS…………………………………………………………………………………………………….

SIGNATURE……………………………………………………………………………………DATE…………………………….

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PRE – QUALIFICATION REQUIREMENTS (ADMINISTRATIVE COMPLIANCE)

1.1 Bid Document - All pages must be completed and signed (where signature is applicable) by the Bidder

1.2 Invitation to bid must be Completed and signed (SBD 1)

1.4 Pricing Schedules must be fully completed and signed (SBD 3.3)

1.5 Declaration of Interest must be fully completed and signed (SBD 4)

1.6 Preference Points Claim Forms must be fully completed and signed (SBD 6.1)

1.7 Declaration of Bidder’s Past Supply Chain Management Practices must be fully completed and signed (SBD

8)

1.8 Certificate of Bid Determination must be fully completed and signed (SBD 9)

1.9 JV or Consortium Agreement where applicable must be attached

FAILURE TO COMPLY WITH THE ABOVE MENTIONED PRE-QUALIFICATION INSTRUCTIONS WILL LEAD TO

DISQUALIFICATION

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PART 3

TERMS OF REFERENCE

APPOINTMENT OF A PANEL OF SERVICE PROVIDERS TO PROVIDE CO-SOURCE INTERNAL AUDIT AND

FORENSIC SERVICES TO THE DEPARTMENT OF COOPERATIVE GOVERNANCE AS AND WHEN REQUIRED FOR

A PERIOD OF 36 MONTHS

Purpose of assignment

1.1 To appoint a panel of service providers, who will be assisting the Internal Audit function of the Department of

Cooperative Governance (DCoG) to accomplish its objectives by bringing in a systematic, disciplined approach

to evaluate and improve the effectiveness of risk management, control and governance processes, as well as

to transfer skills in the process.

2. Introduction and background

2.1 DCOG operates and takes the lead in fostering cooperative governance within the three spheres of Government

(being National, Provincial and Local Government). The department strategic focus is to ensure coordination

among the three spheres of government to enable services to be channelled towards the citizen of the country

with the objective of eradicating poverty, inequality and unemployment.

2.2 The Internal Audit function of the DCoG was set up under sections 38(1)(a)(ii) and 76(4) (e) of the Public

Finance Management Act 1999 (Act No. 1 of 1999) (PFMA) and Paragraph 3.2.2 of the Treasury Regulations.

2.3 In assisting DCoG in achieving its mandate the Internal Audit function seeks to appoint a panel of service

providers which will enables it to capacitate and have a diverse team to provide assurance services in specialist

areas and where management or the Audit Committee would require it.

2.4 The scope of internal audit is in line with the Treasury Regulations, to determine whether DCoG’s network of

risk management, control, and governance processes, as designed and represented by management is

adequate and functioning in a manner to ensure:

2.4.1 Risks are appropriately identified and managed;

2.4.2 Significant financial, managerial, and operating information is accurate, reliable and timely;

2.4.3 Employees actions are in compliance with policies, standards, procedures, and applicable laws and

regulations;

2.4.4 Resources are acquired economically, used efficiently and adequately protected;

2.4.5 Programmes, plans and objectives are achieved;

2.4.6 Quality and continuous improvement are fostered in the organisation’s control process; and

2.4.7 Significant legislative or regulatory issues impacting the organisation are recognised and addressed

appropriately.

2.5 The Internal Audit three-year rolling plan for 2020/2021 - 2022/23 was developed and approved. The approved

plan contains projects to be executed in the 2020/2021, 2021/22 and 2022/23 financial years. Some of the

projects identified on the plan include Information Communication Technology (ICT), Performance, Financial

and Compliance audits amongst others.

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3. Problem Statement

Due to the size and the complex nature of the Department, the Internal Audit function has capacity & skills

shortage challenges in fully executing its function and giving assurance on the effectiveness of risk management,

control and governance processes.

A panel of service providers will enable the Internal Audit function to be fully capacitated and have a diverse team

to provide assurance and forensic services as and when required.

4. Scope of the assignment

The panel of service providers to be appointed will be required to perform the following functions as and when

assigned by the Chief Audit Executive:

Perform audits and forensic investigations services as per assignment and under the management of the

Internal Audit function;

Perform audits according to the International Standards for the Professional Practice of Internal Auditing

(ISPPIA) and Internal Audit Activity(IAA) methodology;

Monitor and evaluate performance of team members on audit projects;

Perform quality assurance reviews for the projects;

Use DCoG in-house Internal Audit methodology;

Write and present audit reports to the management which was subjected to audit through the office of the

Chief Audit Executive;

Write and present investigation report to the management which was subjected to investigation through the

office of the Chief Audit Executive;

Perform business process analysis and suggest best practices for improvement of the IAA; and

Attend planned meetings with Chief Audit Executive or his/her delegate and relevant managers when

required.

Forensic and ad-hoc services will be performed when a request is received from management, these services

will be requested on an ad-hoc basis.

5. Deliverables

The expected project deliverables are as follows:

Perform audits as per the approved Internal Audit Annual Plan to provide assurance on risk management,

control and governance process;

Performing/Execution of audits according to the Standards for the Professional Practice of Internal Auditors

(SPPIA), which include audit planning, audit execution, reporting and monitoring and follow-up;

Providing quality internal audit reports that are clear; concise and accurate together with practical and value

adding recommendations that will add value to the Department

Provide a structured training and skill transfer during the process;

Perform quality assurance of all the projects allocated to the team;

All proposed reviews/project completed and signed off within the prescribed time as per the contract;

The service provider must provide a complete audit file for the allocated projects (manual and soft copy).

6. Skills and Knowledge requirements:

In order to execute this project the service provider/s must possess the following knowledge, expertise and skills: 6.1 Knowledge

An in depth understanding of the Internal Audit Standards; Knowledge of the corporate governance in the public sector; Knowledge of the functions, responsibilities and powers of the Internal Audit in the public sector; In depth knowledge of Performance audit methodologies and best practices in line with existing

guidelines/frameworks/standards; Sufficient capacity and skills to execute audits. Preferably the project teams should include members with the following Professional qualifications which

includes Certified internal auditor, Chartered accountants, Certified information system auditors and certified fraud examiners.

6.2 Skills

The ability to undertake interviews and surveys and interpret data;

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Analytical thinking; Interpretation of policies, processes and prescripts; Report writing and presentation; Good interpersonal relationship skills.

6.3 Essential Expertise

Business process mapping analysis; Budget analysis; Policy analysis; The ability to interact and form relationships across the department with key stakeholders.

7. Time frame

7.1 The contract with the successful service provider will be for the period of 36 months. 7.2 The project will commence upon date of signing of the Service Level Agreement (SLA) between the DCoG and

the Successful bidder/ service provider. 8. Performance Measurement/ Reporting

To facilitate the performance of Service Providers and monitor their scope of work, the DCoG will:

8.1 Enter into a Service Level Agreement (SLA) that will govern the relationship between DCoG and the service

provider. 8.2 The SLA will include project assignments that will address each of the project deliverable. 8.3 Establish a Project Steering Committee to manage, monitor and oversee the project. This committee will ensure

that:

Services are rendered timeously;

Timeframes as far as possible are not extended;

Will render a quality assurance function; and

Will ensure that additional costs are not incurred unnecessarily. 8.4 The Service Provider will be expected to table progress reports for each deliverable contained in the

implementation plan as agreed to and as per the SLA. 8.5 Monitor the payment schedule that will be attached to the SLA. Payments will therefore only be approved and

processed on the basis of the achievement of deliverables as per the implementation plan and/or project plan and related performed project tasks.

8.6 These deliverables and related payments will be approved by the Chief Audit Executive. 9. Form of proposal

Bidders should comply with the format below when submitting their bids.

Functionality

Methodology, Technical approach in executing Forensic & Audit Projects

Bidders Experience - The reference letter must reflect the period of a contract, Value and contact details

for the reference Company

Qualifications (team members); and

Knowledge and Experience (team members)- Attach CV(s) of proposed team highlighting relevant

expertise & contactable references

Pricing

Rates of each team member from Senior Manager/Directors to Internal auditors

Value Added Tax

9.1 Bidders must include a methodology as per the proposal in their bid.

The following information must be included in the methodology:

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(a) Proposed Governance Arrangements to support project implementation which may include but not limited to:

The establishment of a project steering committee.

The establishment of a project management team inclusive of the service provider and the DCoG team.

Provision of secretariat support for the governance structures that will be established.

(b) Skills Transfer Plan developed in line with the Terms of Reference.

(c) Previous and current similar contracts awarded to the bidder as well as client references.

Bid Prices

10. Bidders must express prices for their services in South African currency (Rand). All prices must be inclusive of

Value Added Tax and costs to be incurred that are necessary for the execution and completion of the contract in accordance with the bid document. Prices will remain firm for the duration of the contract.

11. Bid Evaluation System

11.1 All bids duly lodged will be evaluated to determine compliance with bid requirements and conditions. Bids with obvious deviations from the bid requirements/conditions of bid and not acceptable to the evaluation committee will be eliminated from the adjudication process i.e. will not be shortlisted. All bid proposals submitted will be evaluated in accordance with the 80/20 principle and the evaluation criteria should be as follows:

Stage 1: Compliance with minimum requirements of the bid

All bids duly lodged will be evaluated to determine compliance with requirements and conditions of the bid. All proposals that do not comply with the administrative requirements/conditions of the bid will be disqualified.

All bids that comply with the minimum requirement/conditions of the bid will be evaluated in two stages:

Stage 2: Functionality will be assessed as per Scorecard as indicated below.

Stage 3: The qualifying bidders in the Stage 2 will be evaluated further on price and BEE Contributor Level using 80/20 preference point system as prescribed in Preferential Procurement Policy Framework Act 2000, Preferential Procurement Regulation 2017 and approved CoGTA Supply Chain Management Policy 2017.

The evaluation will be done as follows:

The system comprises the following elements: (i) Functionality………………………………………….………100 (ii) Price…………………………………………………........…….80 (iii) B-BBEE Contributor level…………….…………..…...……20 STAGE 2 SCORECARD FOR FUNCTIONALITY:

(a) The following criteria will be applied for functionality to assess all the bidders who complied with minimum requirements:

CRITERIA SUB-CRITERIA SCALE WEIGHT HIGHEST POSSIBLE SCORE

Content, methodology, Technical approach in executing Forensic & Audit Projects

The bidder has outlined the methodology and technical approach which addresses the requirements in the ToR.

No methodology, no technical approach, no deliverables = 1

The methodology and technical approach is standard and does not address the entire scope of work/deliverables in

5 x 4 20

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detail and the service provider has aligned the approach with the requirements of the ToR =2

The methodology and technical approach is standard and addresses the entire scope of work/deliverables in detail and the service provider has aligned the approach with the requirements of the ToR =3

The methodology and technical approach is discussed in detail and properly address the entire scope of work/deliverables and the training provider has aligned the approach with the requirements the ToR = 4

The methodology and technical approach is comprehensive and the approach is advanced and innovative on how to address the requirements as listed under the Scope of work and deliverables of the ToR and have raised important issues and possible problems and proposed solutions=5

Project team members and leader qualifications

Qualification of key personnel/Team members who will be assigned to the project (Proof of qualifications attached)

No relevant qualifications. =1

Diploma Internal audit=2

B. Comm Internal audit/ Accounting, Internal Audit Technician certification (IAT) =3

Honours Degree in Internal Audit/ Accounting, Professional Internal audit certification(PIA) =4

Certified Internal Auditor(CIA), Chartered Accountant (CA), Certified Information System Auditor(CISA), and Certified Fraud examiners(CFE) =5

5X 4 20

Project team members and leader knowledge and experience

Appropriate experience of the proposed team members’ and the team leader (attach CV(s) of proposed team highlighting relevant expertise & contactable references)

Internal Audit team members: Less than 3 years’ experience =1 3 to 5 years’ experience = 2 5 to 10 years’ experience = 3

5 x4 20

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Key personnel (partner/managers/ Directors) 10 to 15 years’ experience =4 More than 15 years’ experience = 5

Bidder’s competency and capacity to deliver the project: Documentary proof of similar projects undertaken with contactable references

Track Record: An established track record

of similar projects within the last 5 years in Government conducting the Internal Audits, IT Audits (including System development review, general & application control review, CAATs/ DATA Analytics and Information security reviews), Forensic investigations / Cyber Forensic, Quality assurance reviews, Control self-assessment and Combined Assurance. (The reference letter must reflect the period of a contract, Value and contact details for the reference Company)

No similar projects = 1 1 to 2 similar projects = 2 3 to 5 similar projects = 3 5 to 10 similar projects = 4 More than 10 similar projects = 5

5X 5

25

Quality Control External quality control assessment conducted on the bidder e.g. by IIA, SAICA or IRBA etc.

No quality control assessment = 1

Quality control assessment conducted more than 5 years ago= 2

Quality control assessment conducted more than 3 years ago=3

Quality control assessment conducted more than 2 years ago=4

Quality control assessment conducted within the last 2 years= 5

5x3 15

TOTAL POSSIBLE SCORE 100

Bids will be rated in respect of each criterion on a scale of 1 – 5 i.e. 1 = Poor, 2 = Acceptable, 3 = Good, 4 Very good and 5 = Excellent. The possible score that can be achieved for functionality is 70. b) The following formula will be utilised to convert the functionality scores: √ Ps = So/Ms x 100 where: Ps = percentage scored for functionality by bid/proposal under consideration S0 = total score of bid/proposal under consideration Ms = maximum possible (c) The average score is calculated for each bid by adding the individual scores awarded by the members of

the bid evaluation committee and dividing the total by the number of the members. Bids that do not achieve the score of 70 (out of 100) for functionality will not be evaluated further and will not pass to STAGE 3 of this Bid.

STAGE 3 EVALUATION IN TERMS OF THE 80/20 PREFERENCE POINT SYSTEM All received bids will be evaluated in terms of the 80/20-point system as stipulated in Preferential Procurement

Regulations, 2017. 80 points will be allocated for price and 20 points for attaining the B-BBEE status level of contributor.

Points for price will be calculated only for shortlisted bidder/s as follows: 80/20

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Where Ps =Points scored for competitive price of bid or offer under consideration Pt =Competitive price of bid or offer under consideration; and Pmin =Competitive price of lowest acceptable bid or offer

The maximum possible score that can be achieved for price is 80 points. NB: Bidders are required to, together with their bids submit original and valid B-BBEE status level verification

certificates or certified copies to substantiate their B-BBEE rating claims. A bid will not be disqualified from the bidding process if the bidder does not submit a certificate substantiating the B-BBEE status level of contribution nor is a non-compliant contributor. Such a bidder will score zero out of maximum of 20 points for B-BBEE.

B-BBEE Status Level of Contributor Number of points (80/20 system)

1 20

2 18

3 14

4 12

5 8

6 6

7 4

8 2

Non-compliant contributor 0

Note: No preference will be awarded without submission of a valid B-BBEE certificate.

The total points (out of 100) for the various bidders will be calculated by adding the points for price (out of 80) and the points for BBBEE Contributor Level (out of 20).

12. Awarding of Bid

The bid will be awarded to the bidder who scored the highest total number of points as prescribed in the PPPFA, SCM Policy of 2017 and Preferential Procurement Regulations of 2017.

In exceptional cases the bid may, on reasonable and justifiable grounds, be awarded to a bidder that did not score the highest number of points. Reasons for such decision must be approved and recorded for audit purposes and must be justifiable in the court of law (as prescribed on the Preferential Procurement Regulations 2017).

(a) Joint Ventures, Consortiums and Trusts:

A trust, consortium or joint venture, will qualify for points for their B-BBEE status level as a legal entity, provided that the entity submits their B-BBEE status level certificate. A trust, consortium or joint venture will qualify for points for their B-BBEE status level as an unincorporated entity, provided that the entity submits their consolidated B-BBEE scorecard as if they were a group structure and that such a consolidated B-BBEE scorecard is prepared for every separate bid. Bidders must submit concrete proof of the existence of joint ventures and/or consortium arrangements. DCoG will accept signed agreements as acceptable proof of the existence of a joint venture and/or consortium arrangement. The joint venture and/or consortium agreements must clearly set out the roles and responsibilities of the Lead Partner and the joint venture and/or consortium party. The agreement must also clearly identify the Lead Partner, who shall be given the power of attorney to bind the other party/parties in respect of matters pertaining to the joint venture and/or consortium arrangement.

(b) Sub-contracting:

min

min180

P

PPtPs

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Bidders/ tenderers who want to claim Preference points will have to comply fully with regulations 11(8) and 11(9) of the PPPFA Act with regard to sub-contracting. The following is an extract from the PPPFA Act:

(i) “A person must not be awarded points for B-BBEE status level if it is indicated in the tender documents that such a tenderer intends sub- contracting more than 25% of the value of the contract to any other enterprise that does not qualify for at least the points that such a tenderer qualifies for, unless the intended sub-contractor is an EME that has the capability and ability to execute the sub-contract.”

(ii) “A person awarded a contract may not sub-contract more than 25% of the value of the contract to any other enterprise that does not have an equal or higher B-BBEE status level than the person concerned, unless the contract is sub-contracted to an EME that has the capability and ability to execute the sub-contract.”

IN EVALUATING THE TECHNICAL INFORMATION CONTAINED IN THE BID, THE EVALUATION COMMITTEE WILL BE GUIDED BY THE FOLLOWING:

Bidder’s understanding of the brief – The bid provides a clear indication that the bidder fully understands the

purpose and scope of the work and the bidder’s own roles and functions in this regard. (Methodology)

Capability and experience – The bid provides a clear indication that the bidder’s team comprises people with

the necessary qualifications, experience, skills, knowledge and required to ensure the efficient and effective generation of the required deliverables to the highest standards of quality.

Track Record – The bid provides clear information on previous, relevant projects that confirm that the bidder has

the required experience and success track record in the area of general project management and management related projects.

13. Briefing session and presentations by shortlisted bidders

A compulsory briefing session will be held as stated on the cover page of the bid document. Bids from

companies/organisations who did not attend the compulsory briefing session will be disqualified. 14. Enquiries

The names and contact details of the relevant DCoG officials are on the first page of the bid document.

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Part 4 – Schedule A

Government Procurement

General Conditions of Contract and Special Conditions of Contracts

NOTES

The purpose of this document is to:

(i) Draw special attention to certain general conditions applicable to government bids, contracts and orders; and

(ii) Ensure that clients are familiar with the rights and obligations of all parties involved in doing business with government.

In this document words in the singular also mean the plural and vice versa and words in the masculine also mean the feminine and

neuter.

• The General Conditions of Contract (GCC) will form part of all bid documents and may not be amended.

• Special Conditions of Contract (SCC) relevant to a specific bid should be compiled separately for every bid (if applicable)

and will supplement the General Conditions of Contract. Whenever there is a conflict, the provisions in the SCC shall

prevail.

TABLE OF CLAUSES

1. Definitions

2. Application

3. General

4. Standards

5. Use of contract documents and information; inspection

6. Patent rights

7. Performance security

8. Inspections, tests and analysis

9. Packing

10. Delivery and documents

11. Insurance

12. Transportation

13. Incidental services

14. Spare parts

15. Warranty

16. Payment

17. Prices

18. Contract amendments

19. Assignment

20. Subcontracts

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21. Delays in the supplier’s performance

22. Penalties

23. Termination for default

24. Dumping and countervailing duties

25. Force Majeure

26. Termination for insolvency

27. Settlement of disputes

28. Limitation of liability

29. Governing language

30. Applicable law

31. Notices

32. Taxes and duties

33. National Industrial Participation Programme (NIPP)

34. Prohibition of restrictive practices

General Conditions of Contract

1. Definitions.

1. The following terms shall be interpreted as indicated:

1.1 “Closing time” means the date and hour specified in the bidding documents for the receipt of bids.

1.2 “Contract” means the written agreement entered into between the purchaser and the supplier, as recorded in the contract form

signed by the parties, including all attachments and appendices thereto and all documents incorporated by reference therein.

1.3 “Contract price” means the price payable to the supplier under the contract for the full and proper performance of his contractual

obligations.

1.4 “Corrupt practice” means the offering, giving, receiving, or soliciting of anything of value to influence the action of a public

official in the procurement process or in contract execution.

1.5 "Countervailing duties" are imposed in cases where an enterprise abroad is subsidized by its government and encouraged to

market its products internationally.

1.6 “Country of origin” means the place where the goods were mined, grown or produced or from which the services are supplied.

Goods are produced when, through manufacturing, processing or substantial and major assembly of components, a

commercially recognized new product results that is substantially different in basic characteristics or in purpose or utility from

its components.

1.7 “Day” means calendar day.

1.8 “Delivery” means delivery in compliance of the conditions of the contract or order.

1.9 “Delivery ex stock” means immediate delivery directly from stock actually on hand.

1.10 “Delivery into consignees store or to his site” means delivered and unloaded in the specified store or depot or on the specified

site in compliance with the conditions of the contract or order, the supplier bearing all risks and charges involved until the

supplies are so delivered and a valid receipt is obtained.

1.11 "Dumping" occurs when a private enterprise abroad market its goods on own initiative in the RSA at lower prices than that of

the country of origin and which have the potential to harm the local industries in the RSA.

1.12 “Force majeure” means an event beyond the control of the supplier and not involving the supplier’s fault or negligence and

not foreseeable. Such events may include, but is not restricted to, acts of the purchaser in its sovereign capacity, wars or

revolutions, fires, floods, epidemics, quarantine restrictions and freight embargoes.

1.13 “Fraudulent practice” means a misrepresentation of facts in order to influence a procurement process or the execution of a

contract to the detriment of any bidder, and includes collusive practice among bidders (prior to or after bid submission)

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designed to establish bid prices at artificial non-competitive levels and to deprive the bidder of the benefits of free and open

competition.

1.14 “GCC” means the General Conditions of Contract.

1.15 “Goods” means all of the equipment, machinery, and/or other materials that the supplier is required to supply to the purchaser

under the contract.

1.16 “Imported content” means that portion of the bidding price represented by the cost of components, parts or materials which

have been or are still to be imported (whether by the supplier or his subcontractors) and which costs are inclusive of the costs

abroad, plus freight and other direct importation costs such as landing costs, dock dues, import duty, sales duty or other

similar tax or duty at the South African place of entry as well as transportation and handling charges to the factory in the

Republic where the supplies covered by the bid will be manufactured.

1.17 “Local content” means that portion of the bidding price which is not included in the imported content provided that local

manufacture does take place.

1.18 “Manufacture” means the production of products in a factory using labour, materials, components and machinery and includes

other related value-adding activities.

1.19 “Order” means an official written order issued for the supply of goods or works or the rendering of a service.

1.20 “Project site,” where applicable, means the place indicated in bidding documents.

1.21 “Purchaser” means the organization purchasing the goods.

1.22 “Republic” means the Republic of South Africa.

1.23 “SCC” means the Special Conditions of Contract.

1.24 “Services” means those functional services ancillary to the supply of the goods, such as transportation and any other incidental

services, such as installation, commissioning, provision of technical assistance, training, catering, gardening, security,

maintenance and other such obligations of the supplier covered under the contract.

1.25 “Written” or “in writing” means handwritten in ink or any form of electronic or mechanical writing.

2. Application.

2.1 These general conditions are applicable to all bids, contracts and orders including bids for functional and professional services,

sales, hiring, letting and the granting or acquiring of rights, but excluding immovable property, unless otherwise indicated in

the bidding documents.

2.2 Where applicable, special conditions of contract are also laid down to cover specific supplies, services or works.

2.3 Where such special conditions of contract are in conflict with these general conditions, the special conditions shall apply.

3. General.

3.1 Unless otherwise indicated in the bidding documents, the purchaser shall not be liable for any expense incurred in the

preparation and submission of a bid. Where applicable a non-refundable fee for documents may be charged.

3.2 With certain exceptions, invitations to bid are only published in the Government Tender Bulletin. The Government Tender

Bulletin may be obtained directly from the Government Printer, Private Bag X85, Pretoria 0001, or accessed electronically from

www.treasury.gov.za.

4. Standards.

4.1 The goods supplied shall conform to the standards mentioned in the bidding documents and specifications.

5. Use of contract documents and information; inspection.

5.1 The supplier shall not, without the purchaser’s prior written consent, disclose the contract, or any provision thereof, or any

specification, plan, drawing, pattern, sample, or information furnished by or on behalf of the purchaser in connection therewith,

to any person other than a person employed by the supplier in the performance of the contract. Disclosure to any such

http://www.treasury.gov.za/

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employed person shall be made in confidence and shall extend only so far as may be necessary for purposes of such

performance.

5.2 The supplier shall not, without the purchaser’s prior written consent, make use of any document or information mentioned in

GCC clause

5.1 Except for purposes of performing the contract.

5.3 Any document, other than the contract itself mentioned in GCC clause

5.1 shall remain the property of the purchaser and shall be returned (all copies) to the purchaser on completion of the supplier’s

performance under the contract if so required by the purchaser.

5.4 The supplier shall permit the purchaser to inspect the supplier’s records relating to the performance of the supplier and to have

them audited by auditors appointed by the purchaser, if so required by the purchaser.

6. Patent rights.

6.1 The supplier shall indemnify the purchaser against all third-party claims of infringement of patent, trademark, or industrial

design rights arising from use of the goods or any part thereof by the purchaser.

7. Performance security

7.1 Within thirty (30) days of receipt of the notification of contract award, the successful bidder shall furnish to the purchaser the

performance security of the amount specified in SCC.

7.2 The proceeds of the performance security shall be payable to the purchaser as compensation for any loss resulting from the

supplier’s failure to complete his obligations under the contract.

7.3 The performance security shall be denominated in the currency of the contract, or in a freely convertible currency acceptable

to the purchaser and shall be in one of the following forms: (a) a bank guarantee or an irrevocable letter of credit issued by a

reputable bank located in the purchaser’s country or abroad, acceptable to the purchaser, in the form provided in the bidding

documents or another form acceptable to the purchaser; or (b) a cashier’s or certified cheque

7.4 The performance security will be discharged by the purchaser and returned to the supplier not later than thirty (30) days

following the date of completion of the supplier’s performance obligations under the contract, including any warranty obligations,

unless otherwise specified in SCC.

8. Inspections, tests and analyses.

8.1. All pre-bidding testing will be for the account of the bidder.

8.2. If it is a bid condition that supplies to be produced or services to be rendered should at any stage during production or execution

or on completion be subject to inspection, the premises of the bidder or contractor shall be open, at all reasonable hours, for

inspection by a representative of the Department or an organization acting on behalf of the Department.

8.3 If there are no inspection requirements indicated in the bidding documents and no mention is made in the contract, but during

the contract period it is decided that inspections shall be carried out, the purchaser shall itself make the necessary arrangements,

including payment arrangements with the testing authority concerned.

8.4 If the inspections, tests and analyses referred to in clauses 8.2 and 8.3 show the supplies to be in accordance with the contract

requirements, the cost of the inspections, tests and analyses shall be defrayed by the purchaser.

8.5 Where the supplies or services referred to in clauses 8.2 and 8.3 do not comply with the contract requirements, irrespective of

whether such supplies or services are accepted or not, the cost in connection with these inspections, tests or analyses shall be

defrayed by the supplier.

8.6 Supplies and services which are referred to in clauses 8.2 and 8.3 and which do not comply with the contract requirements may

be rejected.

8.7 Any contract supplies may on or after delivery be inspected, tested or analyzed and may be rejected if found not to comply

with the requirements of the contract. Such rejected supplies shall be held at the cost and risk of the supplier who shall, when

called upon, remove them immediately at his own cost and forthwith substitute them with supplies which do comply with the

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requirements of the contract. Failing such removal, the rejected supplies shall be returned at the suppliers cost and risk. Should

the supplier fail to provide the substitute supplies forthwith, the purchaser may, without giving the supplier further opportunity

to substitute the rejected supplies, purchase such supplies as may be necessary at the expense of the supplier.

8.8 The provisions of clauses 8.4 to 8.7 shall not prejudice the right of the purchaser to cancel the contract on account of a breach

of the conditions thereof, or to act in terms of Clause 23 of GCC.

9. Packing.

9.1 The supplier shall provide such packing of the goods as is required to prevent their damage or deterioration during transit to

their final destination, as indicated in the contract. The packing shall be sufficient to withstand, without limitation, rough handling

during transit and exposure to extreme temperatures, salt and precipitation during transit, and open storage. Packing, case size

and weights shall take into consideration, where appropriate, the remoteness of the goods’ final destination and the absence of

heavy handling facilities at all points in transit.

9.2 The packing, marking, and documentation within and outside the packages shall comply strictly with such special requirements

as shall be expressly provided for in the contract, including additional requirements, if any, specified in SCC, and in any

subsequent instructions ordered by the purchaser.

10. Delivery and documents

10.1 Delivery of the goods shall be made by the supplier in accordance with the terms specified in the contract. The details of

shipping and/or other documents to be furnished by the supplier are specified in SCC.

10.2 Documents to be submitted by the supplier are specified in SCC.

11. Insurance.

11.1 The goods supplied under the contract shall be fully insured in a freely convertible currency against loss or damage incidental

to manufacture or acquisition, transportation, storage and delivery in the manner specified in the SCC.

12. Transportation.

12.1 Should a price other than an all-inclusive delivered price be required, this shall be specified in the SCC.

13. Incidental services.

13.1 The supplier may be required to provide any or all of the following services, including additional services, if any, specified in

SCC:

(a) Performance or supervision of on-site assembly and/or commissioning of the supplied goods;

(b) Furnishing of tools required for assembly and/or maintenance of the supplied goods;

(c) Furnishing of a detailed operations and maintenance manual for each appropriate unit of the supplied goods;

(d) Performance or supervision or maintenance and/or repair of the supplied goods, for a period of time agreed by the parties,

provided that this service shall not relieve the supplier of any warranty obligations under this contract; and

(e) Training of the purchaser’s personnel, at the supplier’s plant and/or on-site, in assembly, start-up, operation, maintenance,

and/or repair of the supplied goods.

13.2 Prices charged by the supplier for incidental services, if not included in the contract price for the goods, shall be agreed upon

in advance by the parties and shall not exceed the prevailing rates charged to other parties by the supplier for similar services.

14. Spare parts.

14.1 As specified in SCC, the supplier may be required to provide any or all of the following materials, notifications, and information

pertaining to spare parts manufactured or distributed by the supplier:

(a) Such spare parts as the purchaser may elect to purchase from the supplier, provided that this election shall not relieve the

supplier of any warranty obligations under the contract; and

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(b) In the event of termination of production of the spare parts:

(i) Advance notification to the purchaser of the pending termination, in sufficient time to permit the purchaser to procure needed

requirements; and

(ii) Following such termination, furnishing at no cost to the purchaser, the blueprints, drawings, and specifications of the spare

parts, if requested.

15. Warranty

15.1 The supplier warrants that the goods supplied under the contract are new, unused, of the most recent or current models, and

that they incorporate all recent improvements in design and materials unless provided otherwise in the contract. The supplier

further warrants that all goods supplied under this contract shall have no defect, arising from design, materials, or workmanship

(except when the design and/or material is required by the purchaser’s specifications) or from any act or omission of the

supplier, that may develop under normal use of the supplied goods in the conditions prevailing in the country of final destination.

15.2 This warranty shall remain valid for twelve (12) months after the goods, or any portion thereof as the case may be, have been

delivered to and accepted at the final destination indicated in the contract, or for eighteen (18) months after the date of

shipment from the port or place of loading in the source country, whichever period concludes earlier, unless specified otherwise

in SCC.

15.3 The purchaser shall promptly notify the supplier in writing of any claims arising under this warranty.

15.4 Upon receipt of such notice, the supplier shall, within the period specified in SCC and with all reasonable speed, repair or

replace the defective goods or parts thereof, without costs to the purchaser.

15.5 If the supplier, having been notified, fails to remedy the defect(s) within the period specified in SCC, the purchaser may

proceed to take such remedial action as may be necessary, at the supplier’s risk and expense and without prejudice to any other

rights which the purchaser may have against the supplier under the contract.

16. Payment

16.1 The method and conditions of payment to be made to the supplier under this contract shall be specified in SCC.

16.2 The supplier shall furnish the purchaser with an invoice accompanied by a copy of the delivery note and upon fulfilment of

other obligations stipulated in the contract.

16.3 Payments shall be made promptly by the purchaser, but in no case later than thirty (30) days after submission of an invoice

or claim by the supplier.

16.4 Payment will be made in Rand unless otherwise stipulated in SCC.

17. Prices

17.1 Prices charged by the supplier for goods delivered and services performed under the contract shall not vary from the prices

quoted by the supplier in his bid, with the exception of any price adjustments authorized in SCC or in the purchaser’s request

for bid validity extension, as the case may be.

18. Contract amendments

18.1 No variation in or modification of the terms of the contract shall be made except by written amendment signed by the parties

concerned.

19. Assignment

19.1 The supplier shall not assign, in whole or in part, its obligations to perform under the contract, except with the purchaser’s

prior written consent.

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20. Subcontracts.

20.1 The supplier shall notify the purchaser in writing of all subcontracts awarded under this contracts if not already specified in

the bid. Such notification, in the original bid or later, shall not relieve the supplier from any liability or obligation under the

contract.

21. Delays in the supplier’s performance

21.1 Delivery of the goods and performance of services shall be made by the supplier in accordance with the time schedule

prescribed by the purchaser in the contract.

21.2 If at any time during performance of the contract, the supplier or its subcontractor(s) should encounter conditions impeding

timely delivery of the goods and performance of services, the supplier shall promptly notify the purchaser in writing of the

fact of the delay, its likely duration and its cause(s). As soon as practicable after receipt of the supplier’s notice, the purchaser

shall evaluate the situation and may at his discretion extend the supplier’s time for performance, with or without the imposition

of penalties, in which case the extension shall be ratified by the parties by amendment of contract.

21.3 No provision in a contract shall be deemed to prohibit the obtaining of supplies or services from a national department,

provincial department, or a local authority.

21.4 The right is reserved to procure outside of the contract small quantities or to have minor essential services executed if an

emergency arises, the supplier’s point of supply is not situated at or near the place where the supplies are required, or the

supplier’s services are not readily available.

21.5 Except as provided under GCC Clause 25, a delay by the supplier in the performance of its delivery obligations shall render

the supplier liable to the imposition of penalties, pursuant to GCC Clause 22, unless an extension of time is agreed upon

pursuant to GCC Clause 21.2 without the application of penalties.

21.6 Upon any delay beyond the delivery period in the case of a supplies contract, the purchaser shall, without cancelling the

contract, be entitled to purchase supplies of a similar quality and up to the same quantity in substitution of the goods not

supplied in conformity with the contract and to return any goods delivered later at the supplier’s expense and risk, or to cancel

the contract and buy such goods as may be required to complete the contract and without prejudice to his other rights, be

entitled to claim damages from the supplier.

22. Penalties

22.1 Subject to GCC Clause 25, if the supplier fails to deliver any or all of the goods or to perform the services within the period(s)

specified in the contract, the purchaser shall, without prejudice to its other remedies under the contract, deduct from the

contract price, as a penalty, a sum calculated on the delivered price of the delayed goods or unperformed services using the

current prime interest rate calculated for each day of the delay until actual delivery or performance. The purchaser may also

consider termination of the contract pursuant to GCC Clause 23.

23. Termination for default

23.1 The purchaser, without prejudice to any other remedy for breach of contract, by written notice of default sent to the supplier,

may terminate this contract in whole or in part:

(a) if the supplier fails to deliver any or all of the goods within the period(s) specified in the contract, or within any extension thereof

granted by the purchaser pursuant to GCC Clause 21.2;

(b) If the Supplier fails to perform any other obligation(s) under the contract; or

(c) If the supplier, in the judgment of the purchaser, has engaged in corrupt or fraudulent practices in competing for or in executing

the contract.

23.2 In the event the purchaser terminates the contract in whole or in part, the purchaser may procure, upon such terms and in

such manner as it deems appropriate, goods, works or services similar to those undelivered, and the supplier shall be liable

to the purchaser for any excess costs for such similar goods, works or services. However, the supplier shall continue

performance of the contract to the extent not terminated.

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23.3 Where the purchaser terminates the contract in whole or in part, the purchaser may decide to impose a restriction penalty on

the supplier by prohibiting such supplier from doing business with the public sector for a period not exceeding 10 years.

23.4 If a purchaser intends imposing a restriction on a supplier or any person associated with the supplier, the supplier will be

allowed a time period of not more than fourteen (14) days to provide reasons why the envisaged restriction should not be

imposed. Should the supplier fail to respond within the stipulated fourteen (14) days the purchaser may regard he intended

penalty as not objected against and may impose it on the supplier.

23.5 Any restriction imposed on any person by the Accounting Officer / Authority will, at the discretion of the Accounting Officer /

Authority, also be applicable to any other enterprise or any partner, manager, director or other person who wholly or partly

exercises or exercised or may exercise control over the enterprise of the first-mentioned person, and with which enterprise or

person the first-mentioned person, is or was in the opinion of the Accounting Officer / Authority actively associated.

23.6 If a restriction is imposed, the purchaser must, within five (5) working days of such imposition, furnish the National

Treasury, with the following information:

(i) The name and address of the supplier and / or person restricted by the purchaser;

(ii) The date of commencement of the restriction

(iii) The period of restriction; and

(iv) The reasons for the restriction. These details will be loaded in the National Treasury’s central database of suppliers or

persons prohibited from doing business with the public sector.

23.7 If a court of law convicts a person of an offence as contemplated in sections 12 or 13 of the Prevention and Combating of

Corrupt Activities Act, No. 12 of 2004, the court may also rule that such person’s name be endorsed on the Register for Tender

Defaulters. When a person’s name has been endorsed on the Register, the person will be prohibited from doing business with

the public sector for a period not less than five years and not more than 10 years. The National Treasury is empowered to

determine the period of restriction and each case will be dealt with on its own merits. According to section 32 of the Act the

Register must be open to the public. The Register can be perused on the National Treasury website.

24. Anti-dumping and countervailing duties and rights

24.1 When, after the date of bid, provisional payments are required, or antidumping or countervailing duties are imposed, or the

amount of a provisional payment or anti-dumping or countervailing right is increased in respect of any dumped or subsidized

import, the State is not liable for any amount so required or imposed, or for the amount of any such increase. When, after

the said date, such a provisional payment is no longer required or any such anti-dumping or countervailing right is abolished,

or where the amount of such provisional payment or any such right is reduced, any such favourable difference shall on demand

be paid forthwith by the contractor to the State or the State may deduct such amounts from moneys (if any) which may

otherwise be due to the contractor in regard to supplies or services which he delivered or rendered, or is to deliver or render

in terms of the contract or any other contract or any other amount which may be due to him.

25. Force Majeure